Axis vs IDFC Which Is More Attractive?

Axis Bank and IDFC First Bank are two prominent players in the Indian banking sector. Axis Bank, known for its strong presence in retail and corporate banking, has a well-established reputation for stability and growth. On the other hand, IDFC First Bank, a relatively newer player, aims to disrupt the market with its innovative products and services. Both banks have their strengths and weaknesses, making them interesting options for investors looking to diversify their portfolios in the banking sector.

Axis or IDFC?

When comparing Axis and IDFC, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Axis and IDFC.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Axis has a dividend yield of 1.35%, while IDFC has a dividend yield of 0.92%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Axis reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, IDFC reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Axis P/E ratio at 10.95 and IDFC's P/E ratio at 20.07. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Axis P/B ratio is 1.74 while IDFC's P/B ratio is 1.30.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Axis has seen a 5-year revenue growth of 1.00%, while IDFC's is -0.83%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Axis's ROE at 16.85% and IDFC's ROE at 8.92%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥1330.00 for Axis and ₹107.36 for IDFC. Over the past year, Axis's prices ranged from ¥1028.00 to ¥1664.00, with a yearly change of 61.87%. IDFC's prices fluctuated between ₹104.50 and ₹129.70, with a yearly change of 24.11%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.